19 May 2017

To our stakeholders:

I am pleased to confirm that [ Company Name ] reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

BOURBON has shown particular resilience during the unprecedented crisis that the offshore marine services sector is experiencing.
The priority of the group under these circumstances has been to focus on what can be controlled, while respecting our corporate social responsibility.

The challenges of sustainable development are an integral part of the group’s business governance and contribute to the improvement of our extra-financial performance with the following priority objectives:
- the implementation of a safety policy aimed at “0 incidents”;
- the fuel management;
- the development of partnerships in all zones of operation in order to contribute to local development;
- the ethics and compliance.

In 2016, BOURBON also continued its solidarity commitment in favor of humanitarian projects intended for the education of children and adolescents, thanks to its Corporate Foundation under the aegis of Fondation de France. The major partnerships conducted with the “Baan Dek” Foundation in Thailand and with the IECD in Nigeria have yielded very promising results. The work carried out by the teams on field has been and continues to be outstanding. This report expresses our desire to measure the progress of the group in all of these areas. BOURBON will achieve sustainable success only if it carries out its activities with the greatest respect for the general interest of present and future generations. The group undertakes to promote the ten universal principles in the areas of human rights, labor, the environment and the fight against corruption, as attested by the signature of the United Nations Global Compact three years ago.

We remain mobilized to meet these commitments over the long term.

Sincerely yours,

Christian Lefèvre
Deputy Chief Executive Officer

Compliance with the fundamental conventions
of the International Labour Organization (ILO) and human rights The MLC, Maritime Labour Convention, which was ratifi ed within the
ILO in 2006, entered into force in August 2013. This convention, which is a new pillar of international maritime regulations after STCW, MARPOL and SOLAS, is similar to a Seafarers Charter, and sets minimum working standards onboard vessels of over 500 UMS. It brings together over 60 existing international conventions or regulations. All vessels must carry a maritime labor certifi cate delivered by fl ag authorities, to prove that the convention is complied with. This certifi cate is valid for fi ve years. An interim audit is organized every two and a half years. As in previous years, a survey was carried out at the end of 2016 to ensure that all subsidiaries still comply with the fundamental conventions of the ILO on freedom of association, non-discrimination, elimination of forced or compulsory labor, and the effective abolition of child labor.

Equal opportunities and fairness:
BOURBON has an equal opportunities policy in place, which is supported by charters distributed at all levels, in addition to
compliance with any existing regulations in certain operating zones. The monitoring of gender equality introduced in 2015 has revealed that at BOURBON, like the marine sector in general, women are underrepresented in technical, operational and customer-facing roles. These are all careers in which the necessary skills and experience are by and large obtained in seagoing and vessel command roles − an area that still tends to be male-dominated. Access to training and internal promotion has increased the proportion of women in onshore management posts by 19%, particularly in support functions. The surveys and skills assessment methods introduced in mid-2016 for computer-literate onshore personnel will help to identify gateways to these operational, technical and customer-facing roles, as well as to managerial positions. The work performed by BOURBON employees is largely unsuitable for the employment and inclusion of people with disabilities (a fit for duty certifi cate is required for seagoing personnel, and a signifi cant number of onshore jobs require employees to be able to visit the vessels).

International recruitment policy
In 2016, BOURBON employed 82 different nationalities. The operational subsidiaries, acting either on their own account or as
internal recruitment agencies, managed 71% of the workforce, with 29% of personnel provided by external recruitment and placement agencies. Outside recruitment and sourcing companies are selected according to criteria of compliance with international standards and BOURBON standards. Internal sourcing and manning meet the same standards. Manning and sourcing agencies are audited in a yearly program, which is defi ned in BOURBON’s quality system. The aim of these audits is to ensure that selection, recruitment, training and management processes meet BOURBON standards and that these agencies meet international standards, including specific MLC certifi cation. For onshore personnel, BOURBON is improving its recruitment standards by including a skills assessment process, and identifying the training needs of all employees occupying new positions within
the Group. To assist it in downsizing, BOURBON has reinforced its internal sourcing policy aimed at leveraging the operational skills acquired within the Group, particularly for onshore personnel. In 2016, 66 internal promotions were recorded for onshore personnel.

Hiring and departures
The analysis of changes in the workforce, covering all subsidiaries, shows that the workforce contracted in 2016. The subsidiaries recruited 230 personnel to onshore positions, while 396 personnel from this same category left the Group, including 124 due to dismissal or mutually agreed employment termination, i.e. a decrease of 8% for onshore personnel. These subsidiaries also took on 1,662 seagoing or onboardpersonnel, while in this category 3,023 people left the Company, 683 as a result of a dismissal or mutually agreed employment termination, resulting in a decrease of 14% for seagoing or onboard personnel.

At December 31, 2016, the Group retention rate for the workforce as a whole, calculated over two years, was 87%, of which:
3 85% for onshore personnel; 3 83%(1) for officers.

Organization of work
Seagoing personnel and specialized categories of onboard personnel work according to shift systems alternating periods
onboard with onshore rest periods; these systems vary according to the operational zones, types of vessel, and depending on the Company or collective agreements in force. During onboard periods, the work of seagoing personnel is organized in a way that respects the rest times required by the conventions (STCW, MLC) and the regulations of fl ag authorities. Vessel captains and onshore teams are responsible for ensuring compliance with these regulations. The organization of work and rest time of onshore personnel depends on the legislative framework applicable and on the collective agreements entered into at a sector specifi c or local entity level. In 2016, 55% of subsidiaries reported that they referred to internal rules and 29% to collective agreements for managing the working time of their seagoing and/or onshore personnel. In 2016, two of the Group’s French companies signed four new agreements on working hours and rest periods. In 2016, 29% of subsidiaries allowed a certain fl exibility in the working hours of their onshore personnel. In addition, 8% of subsidiaries allowed their staff to work from home, while 11% offered part-time opportunities. Some technical functions on the operational support bases require a continued presence. The personnel in these roles work according to specifi c shift systems alternating work and rest periods. During continuous working time, daily rest periods are respected and weekly rest time caught up on. The shift system was adopted by 8% of subsidiaries in 2016.

Absenteeism and occupational illnesses
In 2016, the absenteeism rate was assessed for all subsidiaries and consolidated by category of personnel:
3 seagoing and specialized categories of onboard personnel;
3 onshore personnel.

For onshore personnel, absence due to sickness or occupational accident was measured, as was the number of unexplained absences. The observed rates were 1.98% for absence due to sickness or accident, and 0.06% for unauthorized absences. To ensure that the consolidated information was consistent, all subsidiaries calculated their absenteeism rate using the same method. Overall, the absenteeism rate recorded for onshore personnel was 2.26%. For offshore personnel, the absenteeism rate was measured by considering the following scope: personnel directly contracted by Group subsidiaries under a permanent contract. The absenteeism rate for this scope was 5.57%, of which 4.95% was absence due to sickness, 0.61% absence due to accident and only 0.01% unauthorized absences. In terms of occupational illnesses, the Group only publishes data for its French subsidiaries. Regulatory differences among the Group’s host countries and the specifi c aspects of managing seagoing personnel effectively preclude the aggregation of data for this indicator. In 2016, nine cases of occupational illness were reported out of a total of 2,137 days of absence; 73% were due to articular and
periarticular conditions and 27% to pulmonary conditions. Alongside the campaigns implemented at Group level (e.g. the “Safety Takes Me Home” campaign and use of personal protective equipment (PPE)), the subsidiaries have developed local safety or awareness campaigns both for onshore and seagoing personnel, designed to prevent operational risks and the health problems that could result (e.g. tropical diseases, correct movement and posture,
water quality, etc.).

Compliance with the fundamental conventions
of the International Labour Organization (ILO) and human rights The MLC, Maritime Labour Convention, which was ratifi ed within the
ILO in 2006, entered into force in August 2013. This convention, which is a new pillar of international maritime regulations after STCW, MARPOL and SOLAS, is similar to a Seafarers Charter, and sets minimum working standards onboard vessels of over 500 UMS. It brings together over 60 existing
international conventions or regulations. All vessels must carry a maritime labor certifi cate delivered by fl ag authorities, to prove that the convention is complied with. This certifi cate is valid for fi ve years. An interim audit is organized every two and a half years. As in previous years, a survey was carried out at the end of 2016 to ensure that all subsidiaries still comply with the fundamental conventions of the ILO on freedom of association, non-discrimination, elimination of forced or compulsory labor, and the effective abolition of child labor.

Involvement in the socio-economic development of the territories and relationships with stakeholders

Local anchoring
This is a basic value of BOURBON that contributes towards benefi ting territories where it provides services towards a positive, and responsible,
economic and social impact. 62% of the workforce in a country are nationals, up 4% from 2015 – this fi gure rises to 78% for onshore positions.
The regional anchoring(1) is 73% for the entire Group.

Professional relations, collective agreements and organization of social dialog

Professional relations are governed by the employment laws applicable to each of the Group’s subsidiaries with employees. Alongside the branch and collective agreements already in place as of December 31, 2015, the Group’s French companies signed new agreements in 2015:
- a branch agreement on professional equality for onshore personnel in France;
- a branch agreement on professional equality for seagoing personnel in France;
- five collective agreements on working hours and a profit-sharing agreement.

In subsidiaries where it is not customary to sign an agreement, employee relations are governed by internal regulations established
by the employer. Professional relations are also governed by the operational management standard. The high level of attention paid to the health and safety of BOURBON personnel, via their division, the international and local regulations and the internal HSE policies has meant that it was not necessary to sign any additional health and safety agreements.

The BOURBON Foundation, under the aegis of the Fondation de France, continued to sponsor its two key partners in Nigeria and
Thailand, and also launched new support projects. The Foundation’s mission is to develop and sponsor general-interest projects with
direct links to education, training, health and local development, in France and other countries where the Group operates.
Current projects: 3 in its second year, the partnership developed with the IECD over a three-year period once again yielded tangible results. The
overarching objective is to foster the inclusion of young people within the labor market in Nigeria. The fi rst intake of 56 students
graduated in 2016; 3 second partnership with the Baan Dek Foundation in Thailand, primarily aimed at giving Birman migrants access to childcare,
was also a success. More than 1,040 migrant children received educational support on topics relating to hygiene, health and the environment.
Aside from the BOURBON Foundation, the Group is also committed to humanitarian causes, notably through the Bourbon Argos AHTS
vessel, which continued its mission to rescue migrants off the Libyan coast for Médecins Sans Frontières. The donation made to the charity helped to cover the cost of lifejackets and emergency blankets to protect the refugees from the cold. BOURBON will have
donated more than €45,000 in total, taking into account all the actions implemented in 2016. Finally, the open days held in 2016 showcasing the assistance, salvage and pollution remediation tugs operated by the company Les Abeilles along the French coast raised more than €20,000,
which will be shared between:
- L’Association Des OEuvres Sociales de la Marine (Brest);
- L’Association Des OEuvres Sociales de la Marine (Cherbourg);
- La Caisse des Péris en Mer de Cherbourg (Cherbourg);
- La Recherche Contre la MUCOVISCIDOSE (Brest).

General environmental policy
To date, fi ve subsidiaries have been ISO 14001 certified. With its Operational Safety Management (OSM)(1) standard, BOURBON
takes a harmonized approach towards operational safety and efficiency, with a special section on the environment. The aim is for
all BOURBON entities to have a tool enabling them to measure and improve their management systems, via a self-assessment based on KPIs derived from industry best practice, both for onshore and offshore operations. In 2016, the team responsible for managing fuel use continued its efforts to improve the collection, processing, quality, verifi cation and sharing of environmental data from vessels. An application to collect operational data has been installed on board 262 Supply and Crew Boats of over 32 m. This application collects vessel operations daily, as well as engine hours which are directly linked to diesel consumption. Fuel, water, oil and waste consumption data are also collected daily. This data is automatically shared internally with over 520 users (Management and Captains/Head Mechanics) using dashboards developed by the “Fuel Management” and “Business Intelligence” teams. This information makes it possible to optimize consumption and minimize the environmental impact of
BOURBON’s maritime activities. Since the client remains the initiator for operations, the scope for action may seem limited. Nevertheless, best practices have been introduced on board vessels to optimize consumption, reduce engine hours and lower emissions. In 2016, crew training in good operational practices continued, the aim being to minimize fuel consumption and therefore greenhouse gas emissions as much as possible. For example, captains are automatically notifi ed by email when best practice for effi cient vessel management has not been followed. Finally, the reference offi cers provide onboard training in modules on the BOURBON intranet. Reference offi cers and Internal Auditors also stress the importance of the quality of reporting for data reliability. All seagoing personnel have access to the various environmental regulations applicable on their vessel. All these measures raise the awareness of seagoing personnel on environmental protection. The daily monitoring of consumption on 262 vessels and monthly monitoring on the rest of the fl eet makes it possible to distinguish consumption by vessels during chartering and non-chartering periods, and also enables fi gures to be fed back on waste generation and freshwater consumption. The recommendations made by international bodies in this regard, particularly the International Maritime Organization (IMO), have been respected. The consumption of fuel (Marine Gas Oil) and lubricant oil in 2016 was 424,982 m3, and 2,769 m3 respectively. In 2016, consumption outside chartering periods represented 27,574 m3, i.e. 6.5% of the Group’s total consumption.

Management of resources
BOURBON operates a fl eet of modern vessels, for the most part equipped with diesel-electric propulsion technology that signifi cantly reduces consumption and atmospheric emissions for offshore oil and gas marine services. A dedicated Fuel Management team is responsible for reporting, monitoring and analyzing the environmental data and has designed ways to feed data back to the crews and various land-based teams (HSE, operations, central functions). The implementation of dashboards makes it possible to monitor environmental indicators every month (Marine Gas Oil, lubricant oil, waste, emissions etc.). This enables the Group to adopt operational behavior which is increasingly responsible. Freshwater production is 61,148 m3 (produced by 47 vessels using osmosis fi lter systems). The consumption of fresh water on board the vessels includes water for sanitary use as well as water intended for rinsing vessel equipment. It was 345,399 m3 across the whole fleet excluding crew boats under 32 m. The consumption of bottled drinking water has not been reported, and neither has the indirect consumption of (electrical) energy by all the offi ces of the operational subsidiaries. Electricity consumption by offi ces in France is almost 800 MWh.

Pollution and waste management

As far as the prevention of environmental risks is concerned, BOURBON applies national and international rules as outlined in
section 4.2 of the management report. Special attention needs to be paid to polluting waste that is accidentally discharged into the sea. In 2016, BOURBON did not log a single major incident(1) of the kind that would cause environmental harm.
The Bourbon Liberty 150 (15 vessels), Bourbon Liberty 300 (20 vessels), Bourbon Explorer 500 (10 vessels), Bourbon
Evolution 800 (10 vessels), PX 105 (6 vessels) and P 105 (6 vessels) series meet the Oil Recovery classifi cation. This classifi cation
indicates that these vessels can contain pollution and retrieve and store on board the hydrocarbons responsible for this pollution.
BOURBON’s vessels are equipped with waste treatment systems that are compliant with the international regulations in force, in
particular those of the IMO. The total volume of waste generated in 2016 was 16,200 m3. The volume of used oil treated(2) amounted to 4,459 m3 across the fl eet, excluding Crew Boats under 32 m. The waste generated and used oil discharged on land are processed by approved companies.
The latest series of vessels delivered – namely the Bourbon Liberty 300 (20 vessels), Bourbon Explorer 500 (9 vessels), Bourbon
Evolution (10 vessels), P 105 (5 vessels) and PX 105 (4 vessels) – satisfy the Cleanship classifi cation requirements. These vessels
have been designed and constructed to address the stringent requirements of protecting fuel reserves, treating waste water and
general waste, limiting discharges into the water and the risk of water pollution as well as the impact on biodiversity.

BOURBON has set up a compliance program. As regards the specific corruption risk linked to the countries in which the Group operates, anti-corruption measures and procedures are an integral part of this program. Its main components are described in the “internal control and risk management procedures” section of the Chairman’s report. The Group has also put in place a dedicated compliance organization with 26 compliance managers across the Group’s subsidiaries who report to the Corporate compliance team. The Group also has a dedicated procedure for compliance requirements which it applies
to third parties and its suppliers in particular. In 2015, the Group launched a Compliance E-learning Program for
all of its onshore and offshore employees. The E-learning program continued in 2016. Very close attention is paid to seagoing personnel who have limited internet access.